RICHMOND, Va., Nov. 8, 2016 /PRNewswire/ -- George C. Freeman, III, Chairman, President, and
Chief Executive Officer of Universal Corporation (NYSE: UVV),
reported that net income for the first half of fiscal year 2017,
which ended on September 30, 2016,
was $19.8 million, or $0.54 per diluted share, compared with
$16.5 million, or $0.40 per diluted share for the same period last
year. Operating income for the six months ended September 30, 2016, of $35.3 million increased by $3.3 million compared to the first half of the
prior year. For the second fiscal quarter ended September 30, 2016, net income was $25.3 million, or $0.90 per diluted share, compared with net income
for the prior year's second quarter of $22.5
million, or $0.81 per diluted
share. Operating income for the quarter ended September 30, 2016, increased by $6.0 million to $43.3
million from $37.3 million for
the three months ended September 30,
2015. Segment operating income for the first half of fiscal
year 2017 was $40.1 million, an
increase of $5.5 million, and for the
quarter ended September 30, 2016, was
$48.3 million, an increase of
$10.1 million, both compared to the
same periods last fiscal year. Those increases resulted
primarily from earnings improvements in the North America and the Other Tobacco Operations
segments, offset in part by declines in the Other Regions segment.
Consolidated revenues increased by $20.6
million to $752.4 million for
the first half of fiscal year 2017, and by $0.6 million to $456.9
million for the three months ended September 30, 2016, compared to the same periods
in the prior year, mostly as a result of modestly higher volumes,
partly offset by lower revenues on the timing of receipt of
dividend income from unconsolidated subsidiaries.
Mr. Freeman stated, "Our results for the six months ended
September 30, 2016, were in line with
our expectations and reflected modestly higher total sales
volumes and lower selling, general, and administrative costs. The
previously announced changes in our leaf supply arrangements in
both the United States and
Mexico positively impacted our
results in the first half of our fiscal year.
"After consecutive years of leaf tobacco supply and demand
imbalance, global demand remains soft and may contribute to delays
in some customer purchase and shipment timing decisions.
Consequently, our shipments are still expected to be weighted to
the second half of the year, and we anticipate that total lamina
sales volumes in fiscal year 2017 will be lower than those of last
year. Reduced crop purchases in Brazil in the current fiscal year, as well as
challenging market conditions in Tanzania, will negatively impact our sales
volumes for this fiscal year. We expect the most significant drop
in volumes to occur in the fourth quarter of our current fiscal
year as Brazil shipped heavily in
the fourth fiscal quarter of 2016, and we do not expect to attain a
similar level of shipments there this fiscal
year.
"At the same time, the lower current crop levels have reduced
our working capital needs this year, decreasing our seasonal
borrowing requirements and increasing our cash reserves. Our
uncommitted inventories have been well-managed and remained within
our target range at 14% for the end of the second fiscal
quarter. As a result, we have continued to maintain our very
strong balance sheet and are pleased to reward our shareholders
with an annual dividend increase for the 46th
consecutive year, as announced earlier today."
FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:
OTHER REGIONS:
Operating income for the Other Regions segment decreased by
$11.0 million to $15.3 million for the first half of fiscal year
2017, compared to the first half of the prior fiscal year.
Operating income for the segment for the quarter ended September 30, 2016, declined by $1.9 million to $32.3
million compared with the second quarter of fiscal year
2016. The declines were largely attributable to lower sales volumes
and other revenues, partly mitigated by lower selling, general, and
administrative expenses. In Africa, comparisons were heavily influenced by
timing factors as volumes for the first half of the fiscal year
declined on slower purchasing and later shipment timing this year,
as well as negative comparisons to the prior year's large carryover
crop volumes. Asia results were
also down on lower current crop sales and delayed shipment timing.
In South America, benefits from
increased sales volumes on higher carryover crops and earlier
shipment timing of current year crops were offset by lower margins
from higher factory unit costs as a result of lower total volumes
handled in Brazil. Selling,
general, and administrative costs for the segment declined
significantly, mainly from the reversal in the second quarter of
fiscal year 2017 of value-added tax reserves, favorable comparison
to costs incurred in the second quarter of fiscal year 2016 to
settle third party challenges to the property rights and valuation
of land, and lower currency remeasurement and exchange losses in
the second fiscal quarter of 2017 in South America, Africa and Asia. Revenues for the Other Regions segment
for the six months and quarter ended September 30, 2016, were down by $51.8 million to $496.6 million and by
$52.5 million to $318.6 million,
respectively, compared with the same periods in the prior year,
reflecting the lower volumes, as well as a decline in revenue
resulting from last year's earlier receipt of dividend income from
unconsolidated subsidiaries.
NORTH AMERICA:
North America segment operating
income of $20.4 million for the six
months and $13.5 million for the
three months ended September 30,
2016, increased by $13.2
million and $9.7 million,
respectively, compared with the same periods in the previous year.
The improvement in both periods reflected higher volumes in every
origin. Selling, general and administrative costs, although higher
in both periods, declined as a percentage of sales on the
additional volumes. Similarly, segment revenues increased by
$55.5 million to $153.5 million for the first half, and by
$31.4 million to $80.8 million for the second quarter of fiscal
year 2017, compared with the same periods in fiscal year 2016, on
those higher volumes, partly offset by lower average green leaf
prices.
OTHER TOBACCO OPERATIONS:
The Other Tobacco Operations segment's operating income
increased by $3.4 million to
$4.4 million for the six months and
by $2.3 million to $2.4 million for the second fiscal quarter ended
September 30, 2016, compared with the
same periods last fiscal year. In both periods, earnings improved
for the dark tobacco operations on higher volumes and favorable
comparisons to the prior year's currency remeasurement and exchange
losses in Indonesia. Earnings for
the oriental joint venture were up slightly, primarily from a more
favorable sales mix and lower currency remeasurement losses from
devaluation of the Turkish lira. Those improvements were partly
offset by losses in the special services group, primarily on larger
factory startup and selling, general and administrative costs for
the new food ingredients business, compared with the prior year.
Selling, general, and administrative costs for the segment were
relatively flat for both the first half and second fiscal quarter
of the current year compared with the previous year. Revenues for
the Other Tobacco Operations segment increased by $17.0 million to $102.4
million for the first half, and by $21.6 million to $57.6
million for the second quarter of fiscal year 2017, mainly
due to higher sales volumes from the timing of shipments of
oriental tobaccos into the United
States, compared to the same periods in the prior year, as
well as the stronger second quarter volumes for the dark tobacco
operations.
OTHER ITEMS:
Cost of goods sold increased by about 5% to $612.4 million for the first half, and by about
3% to $369.1 million for the second
quarter of fiscal year 2017. For both periods, the increase
reflected modestly higher leaf sales volumes and higher overall
average green leaf prices. Selling, general, and administrative
costs decreased by $11.1 million in
the first half of fiscal year 2017 and by $20.0 million for the second fiscal quarter
compared with the same periods in the prior fiscal year. In both
periods, benefits were achieved from a combination of items,
including a favorable comparison to costs incurred in the second
quarter of fiscal year 2016 to settle third party challenges to the
property rights and valuation of a large tract of forestry land,
and the reversal in the second quarter of fiscal year 2017 of
value-added tax reserves. In addition, expenses declined in the
second fiscal quarter of 2017 from lower currency remeasurement and
exchange losses, mainly in South
America, Africa and
Asia.
The consolidated effective income tax rates were approximately
35% and 34% for the quarter and six months ended September 30, 2016, respectively, which
approximates the U.S. statutory rate. The consolidated effective
tax rates for the quarter and six-month periods ended September 30, 2015, were approximately 27% and
24%, respectively. Income taxes for the first half of fiscal year
2016 were lower than the 35% federal statutory rate because of
lower net effective tax rates on income from certain foreign
subsidiaries, as well as effects of changes in local currency
exchange rates on deferred income tax balances.
Results for the second fiscal quarter and six months ended
September 30, 2016 included
restructuring and impairment costs of $3.7
million ($0.09 per diluted
share for the quarter or $0.10 for
the six months). Results for the six months ended September 30, 2015 included restructuring and
impairment costs of $2.4 million
($0.07 per diluted share).
Additional information
Amounts included in the previous discussion are attributable to
Universal Corporation and exclude earnings related to
non-controlling interests in subsidiaries. In addition, the total
for segment operating income (loss) referred to in this discussion
is a non-GAAP measure. This measure is not a financial measure
calculated in accordance with GAAP and should not be considered as
a substitute for net income (loss), operating income (loss), cash
from operating activities or any other operating performance
measure calculated in accordance with GAAP, and it may not be
comparable to similarly titled measures reported by other
companies. A reconciliation of the total for segment operating
income (loss) to consolidated operating income (loss) is provided
in Note 3. Segment Information, included in this earnings release.
The Company evaluates its segment performance excluding certain
significant charges or credits. The Company believes this measure,
which excludes items that it believes are not indicative of its
core operating results, provides investors with important
information that is useful in understanding its business results
and trends.
This information includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. The Company cautions readers that any statements contained
herein regarding earnings and expectations for its performance are
forward-looking statements based upon management's current
knowledge and assumptions about future events, including
anticipated levels of demand for and supply of its products and
services; costs incurred in providing these products and services;
timing of shipments to customers; changes in market structure;
government regulation, including the impact of regulations on
tobacco products; product taxation; industry consolidation and
evolution; changes in global supply and demand positions for
tobacco products; and general economic, political, market, and
weather conditions. Actual results, therefore, could vary from
those expected. A further list and description of these risks,
uncertainties, and other factors can be found in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2016, and in other documents the
Company files with the Securities and Exchange Commission. This
information should be read in conjunction with the Annual Report on
Form 10-K for the fiscal year ended March 31, 2016.
At 5:00 p.m. (Eastern Time) on
November 8, 2016, the Company will
host a conference call to discuss these results. Those wishing to
listen to the call may do so by visiting www.universalcorp.com at
that time. A replay of the webcast will be available at that site
through February 6, 2017. A taped
replay of the call will be available through November 21, 2016, by dialing (855) 859-2056. The
confirmation number to access the replay is 10056222.
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30 countries.
Its revenues for the fiscal year ended March
31, 2016, were $2.1 billion.
For more information on Universal Corporation, visit its website at
www.universalcorp.com.
UNIVERSAL
CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Six Months
Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Sales and other
operating revenues
|
|
$
|
456,942
|
|
|
$
|
456,382
|
|
|
$
|
752,417
|
|
|
$
|
731,801
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
369,098
|
|
|
358,288
|
|
|
612,376
|
|
|
585,318
|
|
Selling, general and
administrative expenses
|
|
40,834
|
|
|
60,810
|
|
|
101,033
|
|
|
112,106
|
|
Restructuring and
impairment costs
|
|
3,682
|
|
|
--
|
|
|
3,682
|
|
|
2,389
|
|
Operating
income
|
|
43,328
|
|
|
37,284
|
|
|
35,326
|
|
|
31,988
|
|
Equity in pretax
earnings of unconsolidated affiliates
|
|
1,260
|
|
|
846
|
|
|
1,130
|
|
|
230
|
|
Interest
income
|
|
271
|
|
|
205
|
|
|
634
|
|
|
444
|
|
Interest
expense
|
|
4,335
|
|
|
3,912
|
|
|
8,389
|
|
|
7,796
|
|
Income before income
taxes
|
|
40,524
|
|
|
34,423
|
|
|
28,701
|
|
|
24,866
|
|
Income tax
expense
|
|
14,026
|
|
|
9,359
|
|
|
9,707
|
|
|
5,927
|
|
Net income
|
|
26,498
|
|
|
25,064
|
|
|
18,994
|
|
|
18,939
|
|
Less: net (income)
loss attributable to noncontrolling interests in
subsidiaries
|
|
(1,234)
|
|
|
(2,599)
|
|
|
794
|
|
|
(2,421)
|
|
Net income
attributable to Universal Corporation
|
|
25,264
|
|
|
22,465
|
|
|
19,788
|
|
|
16,518
|
|
Dividends on
Universal Corporation convertible perpetual preferred
stock
|
|
(3,687)
|
|
|
(3,687)
|
|
|
(7,374)
|
|
|
(7,374)
|
|
Earnings available to
Universal Corporation common shareholders
|
|
$
|
21,577
|
|
|
$
|
18,778
|
|
|
$
|
12,414
|
|
|
$
|
9,144
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Universal Corporation common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.95
|
|
|
$
|
0.83
|
|
|
$
|
0.55
|
|
|
$
|
0.40
|
|
Diluted
|
|
$
|
0.90
|
|
|
$
|
0.81
|
|
|
$
|
0.54
|
|
|
$
|
0.40
|
|
|
See accompanying
notes.
|
UNIVERSAL
CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
294,894
|
|
|
$
|
68,970
|
|
|
$
|
319,447
|
|
Accounts receivable,
net
|
|
251,805
|
|
|
303,963
|
|
|
428,659
|
|
Advances to
suppliers, net
|
|
47,841
|
|
|
40,627
|
|
|
101,890
|
|
Accounts
receivable--unconsolidated affiliates
|
|
51,558
|
|
|
59,370
|
|
|
2,316
|
|
Inventories--at lower
of cost or market:
|
|
|
|
|
|
|
Tobacco
|
|
827,936
|
|
|
999,312
|
|
|
637,132
|
|
Other
|
|
86,472
|
|
|
85,222
|
|
|
60,888
|
|
Prepaid income
taxes
|
|
24,448
|
|
|
19,779
|
|
|
17,814
|
|
Other current
assets
|
|
56,026
|
|
|
75,122
|
|
|
70,400
|
|
Total current
assets
|
|
1,640,980
|
|
|
1,652,365
|
|
|
1,638,546
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
Land
|
|
22,914
|
|
|
16,583
|
|
|
22,987
|
|
Buildings
|
|
266,107
|
|
|
252,153
|
|
|
264,838
|
|
Machinery and
equipment
|
|
599,897
|
|
|
585,466
|
|
|
591,327
|
|
|
|
888,918
|
|
|
854,202
|
|
|
879,152
|
|
Less: accumulated
depreciation
|
|
(566,686)
|
|
|
(539,749)
|
|
|
(553,265)
|
|
|
|
322,232
|
|
|
314,453
|
|
|
325,887
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill and other
intangibles
|
|
99,033
|
|
|
99,049
|
|
|
99,071
|
|
Investments in
unconsolidated affiliates
|
|
81,441
|
|
|
79,995
|
|
|
82,441
|
|
Deferred income
taxes
|
|
25,720
|
|
|
46,633
|
|
|
23,853
|
|
Other noncurrent
assets
|
|
49,107
|
|
|
54,179
|
|
|
61,379
|
|
|
|
255,301
|
|
|
279,856
|
|
|
266,744
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,218,513
|
|
|
$
|
2,246,674
|
|
|
$
|
2,231,177
|
|
|
See accompanying
notes.
|
UNIVERSAL
CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Notes payable and
overdrafts
|
|
$
|
71,002
|
|
|
$
|
86,095
|
|
|
$
|
66,179
|
|
Accounts payable and
accrued expenses
|
|
133,133
|
|
|
155,824
|
|
|
120,527
|
|
Accounts
payable--unconsolidated affiliates
|
|
--
|
|
|
98
|
|
|
8,343
|
|
Customer advances and
deposits
|
|
37,334
|
|
|
67,100
|
|
|
16,438
|
|
Accrued
compensation
|
|
18,885
|
|
|
18,423
|
|
|
27,593
|
|
Income taxes
payable
|
|
1,240
|
|
|
6,126
|
|
|
7,190
|
|
Current portion of
long-term debt
|
|
--
|
|
|
--
|
|
|
--
|
|
Total current
liabilities
|
|
261,594
|
|
|
333,666
|
|
|
246,270
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
368,556
|
|
|
368,203
|
|
|
368,380
|
|
Pensions and other
postretirement benefits
|
|
80,005
|
|
|
93,588
|
|
|
92,177
|
|
Other long-term
liabilities
|
|
41,413
|
|
|
37,472
|
|
|
41,794
|
|
Deferred income
taxes
|
|
28,047
|
|
|
26,034
|
|
|
29,494
|
|
Total
liabilities
|
|
779,615
|
|
|
858,963
|
|
|
778,115
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Universal
Corporation:
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
Series A Junior
Participating Preferred Stock, no par value, 500,000 shares
authorized, none issued or outstanding
|
|
--
|
|
|
--
|
|
|
--
|
|
Series B 6.75%
Convertible Perpetual Preferred Stock, no par value, 220,000 shares
authorized, 218,490 shares issued and outstanding (218,490 at
September 30, 2015 and March 31, 2016)
|
|
211,562
|
|
|
211,562
|
|
|
211,562
|
|
Common stock, no par
value, 100,000,000 shares authorized, 22,783,633 shares issued and
outstanding (22,680,233 at September 30, 2015, and 22,717,735 at
March 31, 2016)
|
|
210,569
|
|
|
207,349
|
|
|
208,946
|
|
Retained
earnings
|
|
1,054,004
|
|
|
1,005,353
|
|
|
1,066,064
|
|
Accumulated other
comprehensive loss
|
|
(73,579)
|
|
|
(71,657)
|
|
|
(72,350)
|
|
Total Universal
Corporation shareholders' equity
|
|
1,402,556
|
|
|
1,352,607
|
|
|
1,414,222
|
|
Noncontrolling
interests in subsidiaries
|
|
36,342
|
|
|
35,104
|
|
|
38,840
|
|
Total shareholders'
equity
|
|
1,438,898
|
|
|
1,387,711
|
|
|
1,453,062
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,218,513
|
|
|
$
|
2,246,674
|
|
|
$
|
2,231,177
|
|
|
See accompanying
notes.
|
UNIVERSAL
CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
(Unaudited)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
18,994
|
|
|
$
|
18,939
|
|
Adjustments to
reconcile net loss to net cash provided (used) by operating
activities:
|
|
|
|
|
Depreciation
|
|
17,324
|
|
|
18,362
|
|
Net provision for
losses (recoveries) on advances and guaranteed loans to
suppliers
|
|
(2,038)
|
|
|
(4,354)
|
|
Foreign currency
remeasurement loss (gain), net
|
|
11,119
|
|
|
21,981
|
|
Restructuring and
impairment costs
|
|
3,682
|
|
|
2,389
|
|
Other, net
|
|
(1,108)
|
|
|
927
|
|
Changes in operating
assets and liabilities, net
|
|
(25,548)
|
|
|
(200,010)
|
|
Net cash provided
(used) by operating activities
|
|
22,425
|
|
|
(141,766)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(17,567)
|
|
|
(28,457)
|
|
Proceeds from sale of
property, plant and equipment
|
|
447
|
|
|
1,155
|
|
Net cash used by
investing activities
|
|
(17,120)
|
|
|
(27,302)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Issuance (repayment) of
short-term debt, net
|
|
5,210
|
|
|
23,827
|
|
Dividends paid to
noncontrolling interests
|
|
(1,260)
|
|
|
(1,260)
|
|
Dividends paid on
convertible perpetual preferred stock
|
|
(7,374)
|
|
|
(7,374)
|
|
Dividends paid on
common stock
|
|
(24,106)
|
|
|
(23,536)
|
|
Other
|
|
(2,245)
|
|
|
(2,037)
|
|
Net cash used by
financing activities
|
|
(29,775)
|
|
|
(10,380)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(83)
|
|
|
(365)
|
|
Net decrease in cash
and cash equivalents
|
|
(24,553)
|
|
|
(179,813)
|
|
Cash and cash
equivalents at beginning of year
|
|
319,447
|
|
|
248,783
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
294,894
|
|
|
$
|
68,970
|
|
|
|
See accompanying
notes.
|
NOTE 1. BASIS OF PRESENTATION
Universal Corporation, which together with its subsidiaries is
referred to herein as "Universal" or the "Company," is the leading
global leaf tobacco supplier. Because of the seasonal nature of the
Company's business, the results of operations for any fiscal
quarter will not necessarily be indicative of results to be
expected for other quarters or a full fiscal year. All adjustments
necessary to state fairly the results for the period have been
included and were of a normal recurring nature. Certain amounts in
prior year statements have been reclassified to conform to the
current year presentation. This Form 10-Q should be read in
conjunction with the financial statements and notes thereto
included in the Company's Annual Report on Form 10-K for the fiscal
year ended March 31, 2016.
NOTE 2. EARNINGS PER SHARE
The following table sets forth the computation of basic and
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Six Months
Ended
September 30,
|
|
(in thousands,
except share and per share data)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
|
|
|
|
|
|
|
Numerator for
basic earnings per share
|
|
|
|
|
|
|
|
|
Net income
attributable to Universal Corporation
|
|
$
|
25,264
|
|
|
$
|
22,465
|
|
|
$
|
19,788
|
|
|
$
|
16,518
|
|
Less: Dividends on
convertible perpetual preferred stock
|
|
(3,687)
|
|
|
(3,687)
|
|
|
(7,374)
|
|
|
(7,374)
|
|
Earnings available to
Universal Corporation common shareholders for calculation of basic
earnings per share
|
|
21,577
|
|
|
18,778
|
|
|
12,414
|
|
|
9,144
|
|
|
|
|
|
|
|
|
|
|
Denominator for
basic earnings per share
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
22,777,394
|
|
|
22,675,323
|
|
|
22,755,927
|
|
|
22,649,270
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.95
|
|
|
$
|
0.83
|
|
|
$
|
0.55
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
|
|
Numerator for
diluted earnings per share
|
|
|
|
|
|
|
|
|
Earnings available to
Universal Corporation common shareholders
|
|
$
|
21,577
|
|
|
$
|
18,778
|
|
|
$
|
12,414
|
|
|
$
|
9,144
|
|
Add: Dividends on
convertible perpetual preferred stock (if conversion
assumed)
|
|
3,687
|
|
|
3,687
|
|
|
--
|
|
|
--
|
|
Earnings available to
Universal Corporation common shareholders for calculation of
diluted earnings per share
|
|
25,264
|
|
|
22,465
|
|
|
12,414
|
|
|
9,144
|
|
|
|
|
|
|
|
|
|
|
Denominator for
diluted earnings per share
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
22,777,394
|
|
|
22,675,323
|
|
|
22,755,927
|
|
|
22,649,270
|
|
Effect of dilutive
securities (if conversion or exercise assumed)
|
|
|
|
|
|
|
|
|
Convertible perpetual
preferred stock
|
|
4,883,372
|
|
|
4,848,766
|
|
|
--
|
|
|
--
|
|
Employee share-based
awards
|
|
307,390
|
|
|
326,539
|
|
|
317,414
|
|
|
287,361
|
|
Denominator for
diluted earnings per share
|
|
27,968,156
|
|
|
27,850,628
|
|
|
23,073,341
|
|
|
22,936,631
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
|
0.90
|
|
|
$
|
0.81
|
|
|
$
|
0.54
|
|
|
$
|
0.40
|
|
NOTE 3. SEGMENT INFORMATION
The principal approach used by management to evaluate the
Company's performance is by geographic region, although the dark
air-cured and oriental tobacco businesses are each evaluated on the
basis of their worldwide operations. The Company evaluates the
performance of its segments based on operating income after
allocated overhead expenses (excluding significant non-recurring
charges or credits), plus equity in the pretax earnings of
unconsolidated affiliates.
Operating results for the Company's reportable segments for each
period presented in the consolidated statements of income were as
follows:
|
|
Three Months
Ended
September 30,
|
|
|
Six Months
Ended
September 30,
|
|
(in thousands of
dollars)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
SALES AND OTHER
OPERATING REVENUES
|
|
|
|
|
|
|
|
|
Flue-Cured and Burley
Leaf Tobacco Operations:
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
80,789
|
|
|
$
|
49,421
|
|
|
$
|
153,471
|
|
|
$
|
97,993
|
|
Other
Regions (1)
|
|
318,576
|
|
|
371,032
|
|
|
496,592
|
|
|
548,433
|
|
Subtotal
|
|
399,365
|
|
|
420,453
|
|
|
650,063
|
|
|
646,426
|
|
Other Tobacco
Operations (2)
|
|
57,577
|
|
|
35,929
|
|
|
102,354
|
|
|
85,375
|
|
Consolidated sales
and other operating revenues
|
|
$
|
456,942
|
|
|
$
|
456,382
|
|
|
$
|
752,417
|
|
|
$
|
731,801
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
|
Flue-Cured and Burley
Leaf Tobacco Operations:
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
13,531
|
|
|
$
|
3,783
|
|
|
$
|
20,379
|
|
|
$
|
7,199
|
|
Other
Regions (1)
|
|
32,342
|
|
|
34,202
|
|
|
15,325
|
|
|
26,355
|
|
Subtotal
|
|
45,873
|
|
|
37,985
|
|
|
35,704
|
|
|
33,554
|
|
Other Tobacco
Operations (2)
|
|
2,397
|
|
|
145
|
|
|
4,434
|
|
|
1,053
|
|
Segment operating
income
|
|
48,270
|
|
|
38,130
|
|
|
40,138
|
|
|
34,607
|
|
Deduct: Equity in
pretax earnings of unconsolidated
affiliates (3)
|
|
(1,260)
|
|
|
(846)
|
|
|
(1,130)
|
|
|
(230)
|
|
Restructuring and
impairment costs (4)
|
|
(3,682)
|
|
|
--
|
|
|
(3,682)
|
|
|
(2,389)
|
|
Consolidated
operating income
|
|
$
|
43,328
|
|
|
$
|
37,284
|
|
|
$
|
35,326
|
|
|
$
|
31,988
|
|
|
|
(1)
|
Includes South
America, Africa, Europe, and Asia regions, as well as inter-region
eliminations.
|
|
|
(2)
|
Includes Dark
Air-Cured, Special Services, and Oriental, as well as inter-company
eliminations. Sales and other operating revenues for this
reportable segment include limited amounts for Oriental because its
financial results consist principally of equity in the pretax
earnings of an unconsolidated affiliate.
|
|
|
(3)
|
Equity in pretax
earnings of unconsolidated affiliates is included in segment
operating income (Other Tobacco Operations segment), but is
reported below consolidated operating income and excluded from that
total in the consolidated statements of income and comprehensive
income.
|
|
|
(4)
|
Restructuring and
impairment costs are excluded from segment operating income, but
are included in consolidated operating income in the consolidated
statements of income and comprehensive income.
|
Logo - http://photos.prnewswire.com/prnh/20150325/194370LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/universal-corporation-reports-improved-six-month-results-300359253.html
SOURCE Universal Corporation